Customer Segmentation

RFM stands for Recency - Frequency - Monetary Value. Theoretically we will have segments like below:

Recency

Frequency

Monetary (Revenue)

Overall Score

To keep things simple, better we name these scores:

Visualizatio

  1. Monetary vs frequency
  2. Monetary vs recency
  3. Frequency vs recency

Based on this knowledge we can target customers according to their segment.